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From an inflationary standpoint, Faber has been saying for a bit that those who hold stocks through this period will fare better than those with bonds.
I've always liked Marc. Granted that he's been very bearish for years, so have I. What I like about him, is that no matter how dire he sees the world, he ALWAYS has suggestions for long side plays. Always.
As for equities? I concur. A blue chip dividend payer (of fund thereof) is a great place to have a goodly portion of your equity monies.
Yup, Rono. I lucked-into PFE/Pfizer. Dividend = $0.22 cents/share, quarterly. But I'm accustomed to the "volatility" of my FUNDS. Compared to them, this single stock runs hot and cold to a degree that makes me frown. Who else was it in here who said that they're holding it, too, and expect it to be at $24.00/share by the end of the year? If this is "off-topic," it's because I'm responding to the idea submitted above that DIVIDEND PAYERS are a good place to be. Actually, THAT'S ALL I OWN, RIGHT NOW! Holy Cow. Just dawned on me.
Added (which I forgot to do the other day): Comments from 2/27/11 from Faber.
"I think we are all doomed. I think what will happen is that we are in the midst of a kind of a crack-up boom that is not sustainable, that eventually the economy will deteriorate, that there will be more money-printing, and then you have inflation, and a poor economy, an extreme form of stagflation, and, eventually, in that situation, countries go to war, and, as a whole, derivatives, the market, and everything will collapse, and like a computer when it crashes, you will have to reboot it.
For the investor, the question is: How do I navigate through this complete disaster that is going to unfold? And I think if you look at different asset classes – real estate, equities, bonds, cash, precious metals – I suppose that you have to be diversified. I think real estate in the U.S. may go down another 10% or so, or even 15%, but I am always telling people, if you can buy the piece of land or the house you like, what do you actually care if it does down another 10%? If everything I bought in my life had only gone down 10-15%, I would be very rich, because a lot of things became worthless, especially loans to friends, and bonds, and so forth. Look at the history, for example, of Germany, for the last 100 years. They had World War I. They had the hyper-inflation in World War II. The bond-holders got wiped out three times. If you owned Siemens, and you still own Siemens today, it was not a fantastic investment, but at least you still have something. You were not wiped out. I think that in equities you will be better off because you have an ownership in a company, than by being the lenders to companies, and the lenders, especially, to governments.
In a money-printing environment, it is very difficult to know what is actually cheap and what is expensive. Is the price of wheat high, or is it low? Inflation-adjusted, it is extremely low. In nominal terms, it is relatively high. I believe that, in March 2009 when the S&P was at 666, the market was actually much cheaper than is generally perceived, because of the money-printing, and I do not anticipate that we will see 666 on the S&P again, in nominal terms. In other words, they are going to print so much money that the S&P could be at, perhaps, 2000, but in real terms, it could be down below the lows of March 6, 2009. "
Comments
Perhaps in September, 2012; when we will know the true cost of a bottle of Ouzo.
http://quote.morningstar.com/fund/f.aspx?pgid=hetopquote&t=mscfx
http://etfdb.com/2012/international-bond-etf-guide-all-the-options-for-ex-u-s-fixed-income-exposure/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed:+etfdb+(ETF+Database)
I've always liked Marc. Granted that he's been very bearish for years, so have I. What I like about him, is that no matter how dire he sees the world, he ALWAYS has suggestions for long side plays. Always.
As for equities? I concur. A blue chip dividend payer (of fund thereof) is a great place to have a goodly portion of your equity monies.
peace,
rono
"I think we are all doomed. I think what will happen is that we are in the midst of a kind of a crack-up boom that is not sustainable, that eventually the economy will deteriorate, that there will be more money-printing, and then you have inflation, and a poor economy, an extreme form of stagflation, and, eventually, in that situation, countries go to war, and, as a whole, derivatives, the market, and everything will collapse, and like a computer when it crashes, you will have to reboot it.
For the investor, the question is: How do I navigate through this complete disaster that is going to unfold? And I think if you look at different asset classes – real estate, equities, bonds, cash, precious metals – I suppose that you have to be diversified. I think real estate in the U.S. may go down another 10% or so, or even 15%, but I am always telling people, if you can buy the piece of land or the house you like, what do you actually care if it does down another 10%? If everything I bought in my life had only gone down 10-15%, I would be very rich, because a lot of things became worthless, especially loans to friends, and bonds, and so forth.
Look at the history, for example, of Germany, for the last 100 years. They had World War I. They had the hyper-inflation in World War II. The bond-holders got wiped out three times. If you owned Siemens, and you still own Siemens today, it was not a fantastic investment, but at least you still have something. You were not wiped out. I think that in equities you will be better off because you have an ownership in a company, than by being the lenders to companies, and the lenders, especially, to governments.
In a money-printing environment, it is very difficult to know what is actually cheap and what is expensive. Is the price of wheat high, or is it low? Inflation-adjusted, it is extremely low. In nominal terms, it is relatively high. I believe that, in March 2009 when the S&P was at 666, the market was actually much cheaper than is generally perceived, because of the money-printing, and I do not anticipate that we will see 666 on the S&P again, in nominal terms.
In other words, they are going to print so much money that the S&P could be at, perhaps, 2000, but in real terms, it could be down below the lows of March 6, 2009. "
http://www.zerohedge.com/article/marc-faber-i-think-we-are-all-doomed